ENGINEERING MANAGEMENT

MIDTERM EXAM 2K24

It is the process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation.

DECISION-MAKING

8 PROCESS OF DECISION-MAKING

1. Diagnose Problem

2. Analyze Environment

3. Articulate Problem or Opportunity

4. Develop Viable Alternatives

5. Evaluate Alternatives

6. Make a Choice

7. Implement Decision

8. Evaluate and Adapt Decision Result

2 APPROACHES IN SOLVING PROBLEMS

Qualitative Evaluation & Quantitative Evaluation

Evaluation of alternatives using intuition and subjective judgment.

QUALITATIVE EVALUATION

Evaluation of alternatives using any technique in a group classified as rational and analytical

QUANTITATIVE EVALUTION

WHAT ARE THE 9 QUANTITATIVE MODELS FOR DECISION-MAKING

1. Inventory Models

2. Queuing Theory

3. Network Models

4. Forecasting

5. Regression Analysis

6. Simulation

7. Linear Programming

8. Sampling Theory

9. Statistical Decision Theory

WHAT ARE THE 4 ORDER OF INVENTORY MODELS?

a. Economic order quantity model

b. Production order quantity model

c. Back Order Inventory model

d. Quantity discount model

calculate the number of items that should be ordered at one time to minimize the total yearly cost.

Economic order quantity model

economic order quantiy technique applied to production orders.

Production order quantity model

used for planned shortages.

Back order inventory model

minimize the total cost when quantity discounts are offered.

Quantity discount model

determine the number of service units that will minimize both customer waiting time and cost of service

Queuing Theory

large complex tasks are broken into smaller segments

Network Models

a collection of past and current information to make predictions about the future

Forecasting

forecasting method that examines the association between two or more variables

Regression Analysis

represent reality, on which conclusions about real-life problems can be used.

Simulation

used to produce an optimum solution within the bounds imposed by constraints upon the decision

Linear Programming

samples of populations are statistically determined to be used for a number of processes: quality control and marketing research.

Sampling Theory

rational way to conceptualize, analyze, and solve problems in situations involving limited, or partial information about the decision environment

Statistical Decision Theory

defined as determining the optimal course of action to attain the intended results.

PLANNING

deciding what will be done, who will do it, where, when, and how it will be done, and the standards to which it will be done.

Cole and Hamilton

define planning as "the selection and sequential ordering of tasks required to achieve an organizational goal

Aldag and Stearns

3 PLANNING MANAGEMENT LEVELS

1. Top management level

2. Middle management level

3. Lower management-level

refers to the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals.

Top management level — strategic planning (1 to 10 years)

is the process of determining the contributions that subunits can make with allocated resources.

Middle management level — intermediate planning (6 months to 2 years)

is the process of determining how a specific task can best be accomplished on time with available resources

Lower management-level — operational planning (1 week to 1 year)

WHAT ARE THE PLANNING PROCESS?

1. setting organizational, divisional, or unit goals

2. developing strategies or tactics to reach those goals

3. determining resources needed and

4. setting standards

is defined as a course of action aimed at ensuring that the organization will achieve its objectives.

STRATEGIES

short-term actions taken by middle and lower management to address immediate issues and support strategies.

TACTICS

3 TYPES OF PLANS

1. Functional Area Plans

2. Plans with Time Horizon

3. Plans According to Frequency of Use

WHAT ARE THE 4 PLANS IN FUNCTIONAL AREA?

a. Marketing Plan

b. Financial Plan

c. Production Plan

d. Human Resource Management Plan

A written document or blueprint for implementing and controlling an organization's marketing activities related to a particular marketing strategy

Marketing Plan

A document that summarizes the current financial situation of the firm, analyzes financial needs and recommends a direction for financial activities.

Financial Plan

A written document that states the quantity of output a company must produce in broad terms and by product family.

Production Plan

A document that indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the company's strategic plan

Human Resource Management Plan

strategies or plans that are set for a specific period

Plans with Time Horizon

Plans intended to cover a period of less than one year

Short Range

Plans covering a time span of more than one year.

Long Range

plans that is based on how often they are applied

Plans According to Frequency of Use

2 FACTORS LEADING TO EFFECTIVE PLANNING

1. Recognize Planning Barriers

2. Gather Aids of Planning

the structuring of resources and activities to accomplish objectives in an efficient and effective manner

ORGANIZING

PURPOSE OF ORGANIZING

a. Division of labor – it is to determine the scope of work and how it is combined in a job.

b. Delegation of authority – it is the process of assigning various degrees of decision making authority to subordinates.

c. Departmentation – it is the grouping of related jobs, activities, or processes into major organizational subunits.

d. Span of control – it is the number of people who report directly to a given manager.

e. Coordination – it is the linking of activities in the organization that serves to achieve a common goal or objective.

the structure that details lines of responsibilities, authority, and position.

Formal Organization

a. Organization Chart - a diagram of the organization’s official positions and formal lines of authority

b. Organizational Manual - provides written descriptions of authority relationships, details the functions of major organizational units, and describes job procedures.

c. Policy Manual - describes personnel activities and company policies

3 Formal Organization

a diagram of the organization’s official positions and formal lines of authority

Organization Chart

provides written descriptions of authority relationships, details the functions of major organizational units, and describes job procedures.

Organizational Manual

describes personnel activities and company policies

Policy Manual

is a group formed by two or more people who join to meet their social, friendship, and emotional needs.

Informal Groups

3 TYPES OF ORGANIZATIONAL STRUCTURE

1. Functional Organization - which everyone engaged in one functional activity, such as engineering or marketing, is grouped into one unit.

2. Product/Market Organization - the organization of company by divisions that brings together all those involved with a certain type of product or customer.

3. Matrix Organization - an organizational structure in which each employee reports to do both a functional or division manager and to a project or group manager.

- which everyone engaged in one functional activity, such as engineering or marketing, is grouped into one unit.

Functional Organization

- the organization of company by divisions that brings together all those involved with a certain type of product or customer.

2. Product/Market Organization

- an organizational structure in which each employee reports to do both a functional or division manager and to a project or group manager.

3. Matrix Organization

3 TYPES OF AUTHORITY

1. Line Authority

2. Staff Authority

3. Functional Authority

- A managers right to tell subordinates what to do and then see that they do it.

- The most fundamental authority within an organization.

Line Authority

- A staff specialist’s right to give advice to a superior. Staff provides manager with varied types of expert help and advice.

2. Staff Authority

- A specialist’s right to oversee lower level personnel involved in the specialty, regardless of where the personnel are in the organization.

3. Functional Authority

formal group of persons formed a specific purpose.

COMMITTEE

a. Governance

b. Research and Recommendations

c. Coordination

d. Tabling

COMMITTEE FUNCTIONS

– it is when a committee is given the power to make decisions, spend money, or take actions. Some or all such powers may be limited or effectively unlimited.

a. Governance

– it is when committees are often formed to do research and make recommendations on a potential or planned project or change.

b. Research and Recommendations

– when individuals form a committee from different parts of an organization meet to discuss developments in their areas, review projects that cut across organizational boundaries, talk about future options, etc.

c. Coordination

– when a committee become a means of public relations by sending sensitive, inconvenient, or irrelevant matters to committees, organizations may bypass, stall, or not acknowledge matters without declaring a formal policy of inaction or indifference.

d. Tabling

is the management function that determines human resource needs, recruits, selects, trains, and develops human resources for jobs created by the organization.

STAFFING